Cuts could make USA a second-rate power, Panetta warns

Cuts could make USA a second-rate power, Panetta warns: "Defense Secretary Leon Panetta warned Friday the United States would become a "second-rate power" if Congress and the White House fail to reach a budget deal that would avoid an extra $500 billion in military budget cuts over the next 10 years."

So a 7% cut would reduce us to only spend 4.6 times (instead of 4.9 times) as much as the 2nd spender! I don't think "hyperbole" is a sufficient word to describe his claims.
http://en.wikipedia.org/wiki/List_of_countries_by_military_expenditures